Government of India

Ministry of Defence
Department of Defence
D(Civ I)

Subject: Circulation of OMs issued by various Ministries/Departments relating to ih

CPC Allowances - reg.

All concerned are requested to download the Government Order issued by

Ministry of Housing and Urban Affairs (MoUD) from their website for necessary
action and compliance. The provisions contained therein are duly applicable to
Defence Civilian employees paid from Defence Service Estimates. The link for
accessing the under mentioned OM is also provided on the website of MoDlDoD
under "Employees Corner>Seventh CPC".

S. Ministry/ OMNo. & Subject

No. Department Date
1. Ministry of 1.17011111(4)/ House Building Advance Rules (HBA)-
Housing 20 J6-H-IH 2017.
and Urban dated Link.:-
Affairs 09.1l.2017 http://mOlld.gov.in/pdfISaOS3 36ac2 8f7HBA
%20Rules%202017.pdf
(MoUD >Publication > Notification> HBA
Rules 2017)

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(Pawan Kumar)
. Under Secretary
Telefax?30·l"24r4
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D(O-H) D(Med) D(Works-I!) D(AG) -. iY(N-H) D(BR) ..

D(Air-IU) D(QA) D(Q&C). D(GS-I/Civ)'" DtG&Vl)~.. D(GS-II)
D(GS-I) D(GS-N) D(Appn) .: D(Mov) D(Res-II) DDP/C60rd
D(R&D) D(QS) D(CG) D(Civ~II) DAD/C60rd
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(D(IT)- With the request to

up load this ID on the website of MoD at location:
J MoDfDoDlEmployees corner! seventh CPC.

MoD ID No. 11(3)/2016- D(Civ-I) dated 2-l-November, 2017

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Copy to:-

AGfMp-4(Civ)(a) NHQICP Dte. Air Hqrs/PC-5 DG-Coast

Guard
DGDE/Admn DGQA/Admin··7B DGAFMSIDG-2(B) DPR
CAO (HR Dte) CGDA OFB, Kolkata Hqrs IDS (Pers)
DGAQA DGNCCfPers(C) E-in-C BranchJEIC DRDOlDoP
Dy. Dir COL): with the request to kindly provide Hindi Translation of this ID Note
for uploading on MoD's website.
Employees' Federations: AIDEF/INDWF/BPMS/CDRA

Copy for information to:

PPS to Hon'ble SO to Defence Sr. PPS to Secretary

RM/RRM Secretary DPIESW/R&D
PPS to all Additional Secretaries/Joint Secretaries PS to DS(CP)
of MoD

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 1.11011/11 (4)/2016-H-1II
Government of India
Ministry of Housing & Urban Affairs
Houslnq-Hl Section
****'**
Nirman Bhawan, New Delhi,
Dated 09.11.2017.
OfFICE MEMORANElUM

Subject: Hous e Building Advance Rules (HBA) - 2017.

The following House Building Advance Rules is in supersession of existing rules

on the subject:

1. Introduction

Grant of House Building Advance for Central Government employees is regulated

in terms of rules and regulations laid down from time to time by the Ministry of Housing &
Urban Affairs (erstwhile Ministry of Urban Development). These rules are as under:
2. Purpose

House Buildinq Advance (HBA) is admissible to an employee for only one of the
following purposes:-
t· .w'
i. Constructing a new house on the plot owned.b~;th~ employee or spouse, either
jointly or individually s-,

ii. Purchasinq a plot and constructing a house thereon.

iii. Purchasing a plot under co-operative Schemes and Gonstructing a house/.tlat
thereon or acquiring a house through membership cf.Cooperatlve' G'roup' '.
Housing So~'ieties. ~' ~' ~_."..." ., ....•.•.. ,
iv Purchase/construction of house under "the. Cf~'/;t}fir'la;rj0jlJ.g
.schemeaot Defl1i '
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Bangalore, UP, Lucl<now etc. - " ; ..-. ~ . ."
v. Outright purchase of a new' re-ady-built houserMrft'6rn~ I-;[pu:sing Boards;
Development Authorities and other statutoryorsemi~Ooverntri~rit bodies and
from registered builders i.e. registered private builders, arthitects".h.ouse
building societies, eto., but not from prlvate'individuals.
vi. Expansion of liVirl'g accommodation of ah existing~ouse owned by the
employee or jointly with spouse. The total Cost of the existing, structure
(excluding cost .ofland) and the proposed additions should not exceed the \ ..

prescribed cost ceiling under these rules.

vii. Repayment of loan oradvanoe taken from a Government 01" HUDCO or private
sources even if the construction has commenced, subject to certain conclnons
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 viii. EXistir]g employees who have already taker) Home Loans from Banks and other
flnanela] institutions .are allowed to migrate to this scheme, subject to fulfillment
of extant conditions.
lx. Constructing only residential portion of the building on a plot earmarked for a
shop-cum-residential plot, in a residential colony, subject to prescribed cost
ceiling

3. eligibility

i. All permanent government employees.

H, All other ernpleyees with at least 5 yearJ? of continuous st:'!rvice, provided
they do not hOI~ .permanent appointment under a State Government and
the sanctioning authority is satisfied about thelr likely retention in service till
the house is Pui!t and mortr;l~.ge(i.
iii. Membt;lrsof All Incjig ServioeseJeputed for service under tile Central
Government/Companyl Associalion/8oqy of individuals whether
incorporated or not, Which is wholly or substantially owned or controlled by
the Central Government or an International Organization, and autonomous
body not controlled by Government or Private Body.
iv. Employees of Union Territories and North East Frontier Agency,
v, Staffl Arti'stes of the AlllncJja Radi0 who flllfil the condition prescribed at (H)
above and have been appointed in long term contracts extending to the age
as Per extant rules,
vi. Central goVernment employees governed by The Payment of Wages Act,
1936,
vii. Central g'overnment employees on deputation to another Department or on
Foreign Service, Such cases to be prooessed by the Head of the Office of
the Parent Department.
vii]. Extant rules for eliQibililY conditions of Ex-servicemen and of central
government employees under suspension..reIll9ins Jllnchanged,

Note: In cases where both the spous as are centr2t/government employees

and are both eligible for grant of'House Building Advance, the advance will
be admissible to both of them jOintly/ separately.

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4. Cost Geiling Conditions - ,C. .

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Cost of the house to be built /purchased (excl~ldin(jthe. cost-of plot) should not
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exceed 139 times of the basic PilY of the employee'f~I~e'et to". a'~na_ximiJm of •
Rs,1.00 crore (one crore) only, Jn individqal cases, if the AdminisGa{(ve Ministry is
satisfied on the merits of the case, the cost ceiling may be relaxed up 'to a
maximum of 25% by the Head of the Deparlmel)t. . :-.• :~

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 5. Amount of Advance

i. Only one advance shall be sanctioned to the government servant during his/ her
entire service.
il. The maximum amount of advance shall be:
a) 34 months basic pay subject to a maximum of Rs. 25.00 lakhs only (Rs. Twenty
five lakhs), or cost of the house/flat, or the amount according to repaying capacity,
whichever is the least for construction/purchase of new house/flat.
b) For expansion of existing house, the amount of HBA Will be limited to 34 months
basic pay subject 10 maximum of RS.10.00 lakhs only (Rs. Ten lakhs), or the cost
of the expansion, or the amount accorcinq to repaying capacity, whichever is the
least.
c) The amount of the advance shall be restricted 10 80% of true cost of tile land and
construction of house or cost of expansion of living accomrnodatlon in the case
of consti"uclion In rural areas. This can be relaxed and 100% can be sanctioned
if the Head of the Department certifies that the concerned rural area falls within
the periphery of town or city.

6. Repayment Capacity

For the purpose of calculating tile admissible loan amount, the repayment capacity
of the central government employee shall be calculated as below:
aT -- In caseSOTemployee retiring afier 40% of basic pay.
20 years.
b) In cases of employee retiring after
Up to 40% of basic pay 65% of bCR
10 years but not later than 20 Gratuity may also be adjusted.
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c) In cases of employee retiring-Up to 50% of basic pay DC R Gratuity up-
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10_ ears. ------_--.1
to 75% ca:.:.n..::b..::e-.:a::.:d::1.J=-us::.:t..::e..::dc.:....

7. Applicable Rate of Interest and Methodolp.gy"of Recovery of House

Building AdVance
i.
The Interest on Housino Building Advance for the fina:lcial year 2017-18 onwarcls
shall be 8.50%. This shall be reviewed every. tlln3~ years to qenotified ln
consultation with Ministry of Finance.
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The methodology of recovery of /-IBA shah continue as per tlJe~_Elxi~lin.~, pa.liElrliT,Or.:_
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recovEiry of principal first in (he first fifteEl!l year~~in not m?r!:;" than 180' mon~hly
installllerils arid interest thereafter in next five vears-ln not ..m,~re than 60 ri10olh.lY
instalments. The acivance carries sirnpla interest from the dafe- of.payment of fir~t
instalment. • .,. -.f'~;;' ..;~' ,~:;; -:.. .
iii.
All cases of subsequent traocbes/ installments of HB~ being taken by the
employee in different financial years shall be governed by the applicable rate cl.
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 Interest in the year in which the HBA was sanctioned, in the event of change in the
rate of interest.

Note: The ctause of adding a higher rate of interest at 2.5% (two point five percent) above
the prescribed rate durinq sanction of House Building Advance, as reproduced
betow, stands withdrawn.

"Sanction shoulcl stipulate the interest 2.5% over anci aoove the scheduled rates with the
stipulation that, if conaiiioos at/aohed 10 tile sanction including those relating to the
recovery of amount we fulfil/eel completely to _the salisfaction of competent aulhority, a
rebate ot interesi of/he extent 0(2.5% will be allowed".

8_ Disbursement

i. Advance for purchase of ready built- house can be paid in one lump slim as soon
as the applicant executes an agreement in the prescribed form. The employee
shouldensure that thehouse is purchased and mortgaged to the Government
within 3 months of drawl of the advances
ii. Advance for purchase/ construction of new flat n,ay be paid either in one lump sum
or in convenient instalments at the discretion of the Head of Department The
employee should execute the agreement in prescribed form before the advance/
first instalment of advance is paid to him/ her. The amount drawn b,Ythe employee
should be lItilized for the purchase/ construction of the flat within one month.
iii. Advance for constructiorv expansion of living accornrnodatlon, etc., shall be
payable in two instalments of 50% each. The first instalment will be paid after the
plot and proposed house/ ex:i$ting house is mortgaged and the balance on the
construction-reaching plinth level.
iv. Advance for expansion to be carried out on the upper storey of the house will be
disbursed in two instalments, first instalment on executing the rnortgage deed and
the second instalment on the construction reaching, root-Iev~<
v. In tile case of advance for purchase of plot and corrstructlon of house, the advance
will be disbursed as below ~.

a) Single Storeyed House: After agreement .ir-,prescribed form is executed

on production of surety bond, 40% of the. advance or actual 'cost will be
disbursed for purchase of plot. The balance amount will be disbursed in two _.,
equal Instalments, first after the mortqaqe; is executed #lrrcf s~Cl':tn'do"n·uie" '--.
construction reaching plinth level. 'r~: ,:;.. '
b) Double Storeyed House: 30% of advance for cost oFr)h;t-will be disbursed
on executing the aqreement, The balance amgYOLWlll );J~'9t5[)l.I!·s~d·in two
equal instalments, the ftrston executing the mortgage deed at-lcf:the.secolld
on construction reaching pli~}h level.
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 9. lVIortgage and Creation of Second Charge
a) House shall be mortgaged on the behalf of President of India. However, the
employee, if he wishes to take a second charge to meet the balance cost of
the house/ plot or flat from recognized financial institutions, then het she
may.declare the same and apply for NOG at the time of the applying for
HBA, NOe for second charge will be given along with sanction order
of HBA, Tile total loan form HBA and from all other sources cannot be
beyond ceiling cost of the house as defined under para 4 above,
b) In case if HBA is availed by both husband/ wife jointly,

L HBA Mortgage paper, insurance paper and other papers regarding

property shall be submitted to one of the loan sanctioning authorities
of their choice.
ii, A No Objection Certificate may be obtained from the 2nd loan
sanctioning authority,
ill. The property mortgaged to behalf of President of India, shall be
reconvened on the prescribed form to the central government
employee concerned (or their successors in interest, as the case
may be), after the advance together with interest thereon, has been
repaid to Government ill full and after obtaining No Demand
Certificate in respect of HBA loan sanctioned by the 2nd loan
sanctioning authority,

10. Insurance
a) Immediately on completion of construction/purchase of house/flat, the
employee shall insure the house with the recognized institutions as
approved by Insurance Regulatory and Development Authority (IRDA),
for not less than the amount of advance and shall keep it so insured against
damage by fire, flood and liglllning till the advance together with interest
,I thereon is repaid in full and deposit the policy documents with the Head of.
I the Department (HoD), Renewal of insurance Will be done every year and
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premium receipts produced for inspection of the HoD reqularly.
b) Penal interest of ,2% over and above e~isling rate of interest will be
recovered from the employee for those, periods which are not covered by
insurance of the house, '

11, Migri'ltion
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For existing House Builqing Advance beneftejlj!ies who ¥yiS';'to migrate; .a separate '

12, Extant rules , .-

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order for migration to the revised House Bulldiilg Advance ruJWs.wll1"beIssued shortly, ' "
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Apart from above stated changes in relevant sections in the earlier version of
House Building Advance rules, all'other extant rules shall continue to apply 'till .turther
orders, ' ".:~
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13. This issues in consultation with Cornptrolierz, Auditor General, in so far as the
persons working in the Indian Audit & Accounts Department concerned.
·14. Hindi version will fallow.

15 This comes to the effect from the date of issue.

svrJ)r- ;
S. . J~V
( hailendra Vikraln Slogl1)
Director
Ministry of Housing & Urban Affairs
Tel-23062798
To

All the Ministries and Departments of the Government of India as per

standard distribution list

COPlYto - C&AG and U.P.S.C., etc. as per Standard endorsement list.

Copy for information 10- PS to MOS(lIc), /-IUA, PSO to Secretary/PPS to JS&FA,

Budget Division and US(Admn), MoHUA, New Delhi.

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